Risk Management in a Global Context

RISK MANAGEMENT IN GLOBAL
CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organizational Learning..............................................................................................................3
Recommendations........................................................................................................................4
Environmental Risk Management-..............................................................................................5
Organisational Resilience-...........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Risk management can be defined as a process through which the organizations
determines, examines and controls the various risks associated with the business operations of an
organization. There are various risks associated with the business operations of an organization
which includes legal, financial, security and strategic risks. The present report is based on the
case study of explosion in Samsung Galaxy Note 7. The present study aims to determine the
ways in which the organization can manage its risks and identifies the learnings of the
organization from this incident. On the above basis of the report, the present report also
recommends how the risk can be managed within an organization.
MAIN BODY
Organizational Learning
There are several lessons which the Samsung learned from the incident of battery
explosion of its Galaxy Note 7 and through this the changes were implemented within the
company.
Sound Manufacturing Process:
The Samsung has learned the importance of a sound manufacturing process within their
operating systems with this incident. They have realized that the manufacturing process of the
batteries should be top most priority of a mobile manufacturing organization in order to ensure
the safety and reliability among the customers. It is essential for the Samsung to cross check the
quality of the batteries which they implant within their cell phones as their might be some hidden
quality defects which are difficult to identify normally (Haizar, N.F.B.M., and et.al 2020). As the
phones age, these hidden defects might turn into big blunders. Therefore, it is essential for the
company to make sure that each and everything used within their cell phones is up to date and
safe to use. The Samsung also learned the importance of a sound manufacturing and assembly
process of their products within the company. Therefore, the company adopted a sound
manufacturing process for the purpose of developing the mobile phones within the company.
This has helped the organization in enhancing its brand image among the customers.
Constant changes in the technology
This incident made the Samsung learn that there is a constant need to make necessary
changes within the batteries and other technology used by the company in order to receive
enhanced outcomes. The whole incident made the Samsung realized that the organization needs

to make special amendments within the technology they are using in order to develop their cell
phone batteries. The Samsung Galaxy Note 7 had lithium – ion batteries. The lithium ion
batteries have the risk of exploding attached to their nature. If the lithium ion batteries are over
charged by the operator or the user, the cell phone is at high risk of being exploded. The
organization is trying hard to provide their customers with smart phones which have exclusive
features within themselves in order to attract the customers towards the same. However, with the
innovation in the smart phones, the demand for high tech batteries has also increased as the
lithium based batteries can only consume the same amount of power as they could consume
before. Therefore, with this incident, the Samsung understood the importance of innovation in
the batteries being used in their smart phones and thus changed the existing battery technology
just after the occurrence of the incident.
Need of revised safety checks
The Samsung learnt that there is a need to enhance their existing safety checks with
respect to their phones within the company. Also, there should be a constant betterment within
the safety checks of the products with the enterprise. This is so, because, in order to grow within
the market, only providing the customers with high tech product is not enough. It is the
responsibility of the organization to make sure that the product they are offering to the customers
is safe to use and cannot harm the customers in any way (Miroudot, 2020). If for some reasons,
the product may be at risk even after several attempts to mitigate the same, the company should
either stop selling it or issue guidelines and notes for the customers on how to use it and what
should be precautionary steps in order to safeguard the customers from the risks attached to the
products of the company. Therefore, the company has introduced a specialized panel for the
safety check of the products being offered to the customers within the company.
Recommendations
In order to ensure that the cell phones launched by the Samsung within the market are
safe to use, there are certain suggestions for the company:
 Conduct safety and durability tests: Before implanting the batteries within the cell
phones, the Samsung should run additional safety and durability tests which can help the
company to determine whether the battery is safe to use or not. This might include
conducting overcharging tests and stress testing with high temperatures.